If we sum the private marginal cost curves of firms producing nuclear power, we createthe
A) industry supply curve for nuclear power
B) market equilibrium for nuclear power
C) total value of the negative externalities generated by nuclear power
D) optimal allocation of resources associated with nuclear power
E) marginal externality cost curve for nuclear power

Question

Quizplus · Accepted Answer

Summing the private marginal cost curves of individual firms results in the industry supply curve, as it represents the total cost to the industry of producing each additional unit of output.

If We Sum the Private Marginal Cost Curves of Firms